What type of deductible typically adds up over multiple claims during a policy period?

The correct choice is the aggregate deductible, which is significant in insurance policies because it accumulates over multiple claims within a specified policy period. This means that the total amount of the deductible that the insured must pay applies to the sum of all claims covered under the policy until the aggregate limit is reached. Once this threshold is surpassed, the insurer begins to cover the additional claims.

This type of deductible is particularly beneficial for businesses or individual policyholders who anticipate multiple losses in a given period. It allows them to predict their out-of-pocket costs more accurately over time, since they will have a single deductible amount to meet before the insurance coverage kicks in for multiple claims.

In contrast, other types of deductibles, such as a dollar deductible or a straight deductible, typically apply on a per-incident basis, meaning that each individual claim is subject to its own separate deductible. An amount-based deductible may also function similarly but does not accumulate in the same manner as an aggregate deductible does over multiple claims.